Public Sector Payrolls Getting too High?

The following excerpt is from the Newport News, Va., Daily Press reprinted in Newsday May 13, 2008:

Local government employees should tighten their belts, too
Once upon a time, government employees traded high salaries for job security, time off, and better health insurance and pensions. Now, they have it all, earning more on average than private-sector workers and getting regular raises, while workers in private enterprise have seen their earnings lag behind inflation.

Some local officials get their obligations confused, and dwell too much on preserving the jobs and salaries of local employees. Certainly, attracting and inspiring good public servants is vital, but the job of elected representatives is to deliver the best services at a price taxpayers are willing and able to pay. When elected officials put employees' interests before taxpayers' interests, payroll costs can push budgets — and taxes — so high they drive away the businesses and middle-class workers who provide the lifeblood of a locality's economy and work force.

That's the kind of thinking that threw Vallejo, Calif., into bankruptcy last week, the kind of thinking that it took New York City years, and massive bailouts, to recover from. It's the kind of thinking that's burdening taxpayers in many localities with excessive bills for payroll and benefits.

Government employees must be treated with fairness and respect. But their needs must be balanced with the larger mission of government, which is to provide needed services without breaking the taxpayers' financial backs.

This article makes many good points. And, if you don’t think this applies to Long Island, here is the data for Long Island from 2005:

The following excerpt is from a research bulletin by the Empire Center for New York State Policy 9/1/06

Average Annual Salary in 2005
New York State & Local Government v. Private Sector
Region	State Government	Local Government	State & Local Government	Private Sector
Long Island	$49,354.00	$52,682.00	$52,256.00	$43,161.00
Nassau	$52,567.00	$55,335.00	$55,194.00	$44,449.00
Suffolk	$48,652.00	$50,118.00	$49,837.00	$41,846.00

and the following conclusions:

• The region with the greatest differential between public and private salaries is the Mohawk Valley, where state and local government jobs pay 124 percent more than private-sector jobs, on average. The runner-up in this category is Long Island, where the average state-local salary is 121 percent of the average private-sector salary.
• The highest-paying local government jobs in New York State are found in New York City, Long Island and the lower Hudson Valley.

This is absolutely unsustainable for the rest of us in the private sector to bear. These public sector employees get job security, cost of living increases, generous sick and vacation days, generous health insurance benefits and in some cases vehicles, gas and cell phones. Not to mention the mother of all bonuses, pensions with lifetime benefits. We hear the same justification for their high salaries and benefits - how can they continue to provide these vital community services if they cannot afford to live on Long Island? If we continue to accept this argument, we in the private sector definitely won’t be able to afford to live on Long Island either.